Zhejiang Guanbo Group Co. Ltd.

　　Zhejiang Guangbo Group Co. Ltd.is a large modern joint-stock group company that mainly engages in the development and production of office supplies, printing paper products, plastic products, metal nano materials and digital cameras as well as import/export trade. Founded in 1992, the Company has now 5000 employees (of which 18 foreign employees, and 4 employees with doctor’s degree). It has total assets of RMB one billion, and 15 holding subsidiary companies including 3 Chinese-foreign joint-ventured companies, 4 overseas companies and 2 hi-tech companies. From January to April in 2005, the Group realized output value of RMB 450 million and sales amount of RMB570 million, of which export reached 150 million, and fulfilled profit duty 30 million, respectively increased by 13.42%, 29%, 29.9% and 15% over last year.

　　Guangbo Group is among Top 500 Private Enterprises and Top 30 Cultural, Education and Sport Products Manufacturers in China. It was granted the title of “Flagship Enterprise in Printing and Packaging Industry of Our Country” in many consecutive years. Guangbo products are famous-brand products in Zhejiang Province and are listed by the State Ministry of Foreign Economic and Trade as 4th group of “famous-brand exported commodities that should be greatly supported and developed”. In 2004, Guangbo Group was rated “enterprises with best export, quality and benefits” Its products sell to over 60 countries and regions, including Europe, America and Southeast Asia.

　　Realized global strategy of traditional stationery industry

　　Since 1992, out of a small color packing enterprise, Guangbo has gradually developed to have six series and more than 1000 different products involving office supplies, printing paper products, plastic products, metal nano materials, digital cameras and electronic products. In 1996, the brand “Guangbo” was successfully registered and from then on, Guangbo Group completes the transform from processing enterprise to product-export enterprise and gradually enters international market.

　　Domestic market: Guangbo Industrial Company has three regional branches in China, 15 business offices in major provinces or areas, and 55 regional general agents or specially-appointed distributors. It keeps a steady cooperation relationship with Wal-mart, METRO, Carrefour, Agricultural, Industrial and Commercial Co. and other large supermarkets. Currently, Guangbo products occupy more than 90% shares in domestic stationery markets, and as famous-brand products in the province and city, enjoy a high awareness in the market .

　　International market: Guangbo Import & Export Company, with 12 business departments, mainly engages in the export of Guangbo product and exercises main management functions of product export. The Group has 4 wholly-owned or holding subsidiaries in the US, Hong Kong, United Arab Emirates and Australia, and nearly 20 general agencies or authorized exclusive distributors in Europe, Southeast Asia, North America and the Middle East. GuangBo brand products are available for sales in more than 60 countries and regions.

　　By driving three chariots of its foreign trade business and obtaining good performance in Europe, the US, Middle East and Asia, Guangbo Group implements global attack strategy of Guangbo, creates global Guangbo brand and builds global economic frame for sales of Guangbo products. It will gradually globalize the marketing, management system and capital operation, localize product production and consolidate its traditional stationery business, so as to develop Guangbo Group’s diversified businesses and push a new economic growth of Guangbo.

　　 Develop hi-tech industry and upgrade gold content of Guangbo brand

　　 Guangbo Group observes the operating strategy of consolidating its traditional stationery business and emphasizing both domestic and foreign sales. It actively and steadily involves nano materials, digital camera and other hi-tech industries and participates in capital operation carefully.

　　Faced with increasingly keener global economic integration and competition, Guangbo Group pays great attention to upgrading its traditional business, and actively seeks for developing diversified businesses at a scale. It invests RMB one billion to build the 580000-m2 Guangbo Technological Park represented by nanometer materials and digital cameras, to fulfill its mid-term and long-term development strategy goal.

　　Nanometer materials: Guangbo Nano Material Co., Ltd. was established in 2000, and is a hi-tech Sino-foreign contractual joint venture mainly engaged in the R&D, production and sales. This company makes great efforts to develop and commercialize the nano metal powder (which is leading field in nano technology) and relevant products.

　　Owning the internationally-advanced nano metal powder manufacturing technology, this company manufactures nano metal powder by applying plasma heating method and Physical Vapour Deposition (PVD) technology under normal state. It has been granted two national invention patents and one new-pattern practical application patent, and owns completely-owned intellectual property right. Guangbo nano material is mainly applied for the internal electrode and terminal of new-generation microelectronic components in electronic and information industries, and fills in the vacancy of this technology in our country. Besides, the nano material is also used in nickel battery, wave-absorbing concealed material, catalyzer and burning rate accelerator.

　　The dominant project of this company is Ningbo Hi-tech Achievement Commercialization Project, which is financed with 2001 Enterprise Innovation Fund of the Ministry of Science and Technology. Its four projects have been listed as key projects of the national new material production base for 10th 5-year plan. In addition, this company is one of first group of nano material model enterprises of Ningbo City, and Ningbo Nano Metal Material Engineering Technology Center and provincial engineering technology center are established in it.

　　 In the new technological park, Guangbo Nano will, based on existing dominant product and market, form production scale as soon as possible. It will plan to, with total investment of RMB 150 million, build 20 nano metal material production lines within next 3 years, to form three product series (nano nickel powder, nano copper powder and nano metal compounds) as well as more than ten types and sizes, with annual output of 300 tons and production value of RMB350 million.

　　 Digital camera: Ningbo Guangbo Digital Technologies Co., Ltd. is a second hi-tech enterprise that Guangbo Group establishes. Founded at the end of 2002, Ningbo Guangbo Digital Technologies Co., Ltd. initially specialized in the R&D, production and sales of digital cameras. At present, Guangbo brand digital cameras of various sizes with 2000000-5000000 pixels passed the assessment by experts and were available in the markets in 12 cities of our country and 8 countries and regions overseas.

　　Guangbo plans to invest RMB one billion to be used for digital-camera production project, and will build 10 camera production lines by 2006, with the annual production capacity of 3000000 digital cameras and output value of RMB 3 billion.

　　Diversified businesses: how to produce intelligent and housing-type office equipment is part of casual office at home and is the target of intelligentized residential community making joint efforts. 35% of American families have intelligentized houses. On the way to diversified hi-tech businesses, Guangbo Group will, by making full use of its advantages, suit to the market demands for intelligentized housing offices, and mainly invests in the production of digital printers and electronic photo frames.

　　Guangbo Group plans to invest US$10 million to build digital printer and electronic photo frame production project in two phases, establish 10 production lines and reach production capacity of RMB 500million ~800 million within 5 years.

　　 intelligentized housing product market has very good prospect. Housing intelligentization gradually becomes the choice of high-income families. Beijing is one of the cities that started housing intelligentization, and the developers also invest much money. With advertising on media, Beijing people have much understanding of intelligentized housings. Following Beijing, property developers of Shanghai, Shenzhen and Guangzhou also follow the house intelligentization trend.

　　Construct global multi-profession talent structure and realize expansion of human resource

　　While realizing industrial and capital expansion, Guangbo lays greater emphasis on the expansion of human resource. It has now 5000 employees, of which over 30% are graduates from colleges and technical secondary schools. This personnel structure is rare in a labor-intensive enterprise.

　　Guangbo Group has 4 wholly-owned or holding subsidiaries in the US, Hong Kong, United Arab Emirates and Australia, and nearly 20 general agencies or authorized exclusive distributors in Europe, Southeast Asia, North America and the Middle East. GuangBo brand products are available for sales in more than 60 countries and regions. Guangbo makes great efforts to implement “going abroad” strategy in these countries and regions, export and penetrate its products and brand into global market so that Guangbo stationery is the representation of “Made in China” and exhibited on the counters of transnational purchaser and international fairs. Guangbo executes localization of its talents and culture penetration. In foreign countries, about 50 marketing experts work for Guangbo. Besides, Guangbo executes “Night Light Engineer” program, and employs over 10 medium- and high-grade talents working as chief technological officers in the transnational companies and research institutes or implementing relevant projects, to solve R&D problems for Guangbo during their spare time, in order to optimize the appearance, performance and imaging feature of Guangbo digital cameras.

　　Guangbo employs numerous professional technical and marketing persons overseas. STEVE TEMKIN, general manager of Guangbo American Company, graduated from Columbia University, was professional stationery marketing expert in American market before his employment with Guangbo. He has unique understanding of American stationery market and sales channel. Guangbo Enterprise Asia (HK) Co., Ltd., employs many Hong Kong citizens who have acute feeling and unique understanding of Southeast Asian market. Besides, many experts work for Guangbo in United Arab Emirates, Italy and Australia. Expansion of human resource allows Guangbo to gradually enter and occupy the markets in Russia, Italy, Britain, Germany, France, Poland and Israel. “GuangBo” brand stationery products gradually win the praises from global major purchasers for their high quality, new pattern and moderate prices.

　　Guangbo Group will consolidate its traditional stationery business, actively develop hi-tech industries, and realize globalization and multi-business development of Guangbo Group. In addition, it will gradually globalize the marketing, management system and capital operation, localize its product production and promote network-type development of Guangbo’s global and regional economy, so as to push a new-round economic growth of Guangbo’s industries.